The Bank of Ghana (BoG) has announced that the GHC1 and GHC2 notes will be phased out of circulation.
According to the Bank of Georgia, these notes will be replaced by their respective coins.
Dr Ernest Addison, Governor of the Bank of Ghana, said during a news conference following the MPC meeting on Monday (27 September), “Both the GHC1 note and the GHC2 note would eventually be phased out since they are not cost-effective in terms of printing expense.”
“Notes that circulate widely and return to us ripped and filthy pose a significant challenge for our currency processing machinery to process.”
“We have bails and bails of GHC1 notes that we are unable to process,” he continued. So, in the long run, the plan is to abandon the GHC1 and GHC2 notes in favor of the GHC1 and GHC2 coins.”
“You will recall that this note [GHC2] was issued as a commemorative note,” Dr. Addison said.
Therefore commemorative notes aren’t something you keep printing, so we introduced the GHC2 coin in the last two years, and you’d anticipate it to eventually fill the same purpose as the GHC2 note.”